Amazon is pivoting its physical grocery strategy by closing all Amazon Fresh and Amazon Go brick-and-mortar stores to prioritize the growth of Whole Foods Market. This shift marks a significant realignment of the company’s retail footprint as it doubles down on formats and services that show the strongest customer resonance.
Amazon says that while it has learned extensively from its “innovation hubs” at Fresh and Go locations, these specific physical formats did not meet the long-term economic and distinctive experience bars required for further investment. Instead, Amazon says it will focus on its most successful grocery asset, Whole Foods Market, which has grown sales by over 40% since being acquired in 2017.
To accelerate this growth, Amazon says it plans to open more than 100 new Whole Foods Market stores in the coming years. This expansion includes the new “Whole Foods Market Daily Shop,” a smaller-format store designed for quick, urban convenience. Amazon says it expects to have 10 of these Daily Shop locations operational by the end of 2026, with some existing Fresh and Go storefronts being converted into the Whole Foods brand.
The company is also leaning heavily into its digital capabilities. Amazon says sales of perishable groceries through its same-day delivery service have increased 40-fold since early 2025. By consolidating its physical efforts under the Whole Foods banner, Amazon says it can better integrate its online and offline shopping experiences, offering customers a seamless way to get fresh food delivered alongside their daily Amazon essentials.
Regarding the technology that powered its Go stores, Amazon says it will continue to scale its “Just Walk Out” checkout-free system. Rather than operating its own small-format stores, Amazon says it will focus on licensing this technology to third-party locations, such as airports and stadiums, where it is already in use at over 360 sites globally.
Amazon says the final day of operation for most Fresh and Go locations will be Feb. 1. For employees affected by these closures, Amazon says it is committed to providing support and identifying opportunities for them to transition into other roles across the company’s fulfillment and operations network.
